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If you insist
It may be remembered that Finance Act 2005 introduced a relief for trusts whereby the first £500 of income that would otherwise be taxable at the special trust rates of 40% (or 32.5% for dividends) will be taxed at the basic rate of 22%, or the lower rate of 20%, or the dividend ordinary rate of 10%, depending upon the nature of the income. I cannot imagine the amount of public money that has been spent in providing this miniscule amount of relief.
If you insist
It may be remembered that Finance Act 2005 introduced a relief for trusts whereby the first £500 of income that would otherwise be taxable at the special trust rates of 40% (or 32.5% for dividends) will be taxed at the basic rate of 22% or the lower rate of 20% or the dividend ordinary rate of 10% depending upon the nature of the income. I cannot imagine the amount of public money that has been spent in providing this miniscule amount of relief.
It gets worse. The August issue of the HMRC Tax Bulletin contains nearly five pages of explanation about how this £500 band works. Any tax saving which might possibly accrue to the client will be completely eroded by the cost of simply reading the explanations; why do they do it?
I am not sure I can be bothered with this at...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
